Meredith Whitney Whacks Shares Of Goldman Sachs

Whitney, who correctly predicted in 2007 that Citigroup Inc. would cut its dividend, didn’t update her price estimate on the shares in a summary note distributed to investors today. Further details on the downgrade weren’t immediately available.

The New York-based analyst upgraded Goldman Sachs to “buy” on July 13, since when the stock has risen 34 percent, compared with a 29 percent increase for the Standard & Poor’s 500 Investment Banking & Brokerage Index. The founder of Meredith Whitney Advisory Group LLC said on Sept. 10 that Goldman Sachs “still has a lot of gas in its tank.”

Goldman Sachs shares dropped 0.9 percent to $188.46 in German trading as of 10 a.m. in Frankfurt.

Update: Via FT Alphaville, here's the version of the note that was sent out to media, to which the always cheeky Alphavillers note: "This is how analyst Meredith Whitney treats the media — the industry that helped turn her into the renowned bankslayer she is today."